Special report: State economic review

The in-depth economic year in review of business sectors in WA reveals some stand-out performers. Measuring the impact of these sectors and their standing in the national picture, David Gibson reports.

The importance of the business investment cycle to Western Australia’s economy cannot be stressed highly enough.

Mining comprises about one fifth of Western Australia’s economy, about four times higher than for Australia as a whole.

Western Australia’s economic expansion over the past four years has made it the economic powerhouse of the nation.

Commodity prices have surged as the Chinese economy has emerged as a major consumer of resources.

Recent multi-million dollar investments in the state’s resources sector have paid off as unprecedented growth in the past four years continues on the back of higher commodity prices.

The housing and resources booms in Western Australia’s so-called ‘V8 economy’ have been credited with the state’s above-average performance, but higher prices are creeping into the picture as the cycle is prolonged.

The State Government budget surplus of $1.24 billion in 2004-05 was the strongest result ever, underpinned to a large extent by higher royalties collected from the booming resources sector.

The Perth property market is arguably leading the country in both the residential and commercial sectors.

Western Australia’s tourism industry celebrated a good year in 2004-05, a period during which ground was made in growing the state’s share of the market.

By far the most dominant demographic influence on the Western Australian economy – and most developed economies for that matter – is that of the baby boomers.

Returns in the farm sector were mixed in 2004-05, both in volume and value terms, but good rainfall in the state’s agricultural areas during the past two months will ensure a strong harvest this year across most commodities.

The state’s economy is showing no signs of cooling its demand for additional emplo-yment capacity, with all signs pointing to a further tightening as the skilled labour market feels the pinch of shortages across the board.

WHILE Western Australia has traditionally been one of the less expensive Australian states in which to live, recent rises in key indicators point to a closing of the cost-of-living gap.

For all the lifestyle it has to offer Perth is often attacked as lacking the vibrancy and cultural diversity available in cities such as Sydney and Melbourne.

Transport, population, history, education and voting trends in WA.